stamp duty calculator

Stamp Duty Calculator

Stamp Duty Land Tax (SDLT) is a progressive tax paid when purchasing a freehold, leasehold or shared ownership residential property in England, Northern Ireland and Wales (separate Land and Buildings Transaction Tax in Scotland). Most recently, the inaugural autumn budget in November 2017 introduced another factor for those buying a property for the first time.

Calculate Stamp Duty Tax

How much is Stamp Duty?
For example, if you buy a house for £275,000, the Stamp Duty Land Tax (SDLT) you owe is calculated as follows:

  • 0% on the first £125,000 = £0
  • 2% on the next £125,000 = £2,500
  • 5% on the final £25,000 = £1,250Total SDLT = £3,750

How to pay Stamp Duty
Usually, your solicitor will deal with the Stamp Duty return and any payment due for you, although you can do it yourself.

stamp duty calculator

What changed in Nov.2017
Stamp duty was abolished for the first time buyers on properties up to £300,000 (Reportedly benefiting 95% of first-time buyers who pay stamp duty).

First-time buyers of homes worth between £300,000 and £500,000 will not pay stamp duty on the first £300,000 but will pay the normal rates of stamp duty on the price above that (Saving £1,660‎ on the average first-time buyer property).

When is Stamp Duty paid?
You must pay stamp duty to the HMRC 30 days from the date of completion or you may risk a fine.

Your solicitor or legal adviser should take care of this for you and ensure you don’t miss the deadline.

Some buyers prefer to add on the SDLT amount to their mortgage loan.

Ask your mortgage provider for further details.

You pay the tax when you:

  • buy a freehold property
  • buy a new or existing leasehold
  • buy a property through a shared ownership scheme
  • are transferred land or property in exchange for payment, eg you take on a mortgage or buy a share in a house

Stamp Duty for first-time buyers

If you’re a first-time-buyer in England, Wales or Northern Ireland, you will pay no Stamp Duty on properties worth up to £300,000.

This means if you are a first-time-buyer, you will save up to £5,000.

For properties costing up to £500,000, you will pay no Stamp Duty on the first £300,000.

You will pay Stamp Duty on the remaining amount, up to £200,000.

If the property you are buying is worth over £500,000, you will pay the standard rates of Stamp Duty.

For example, if the property you want to buy is worth £460,000, you will only pay Stamp Duty on £160,000.

Stamp Duty on second homes

Buyers of additional residential properties, such as second homes and buy-to-let properties, will have to pay an extra 3% in Stamp Duty on top of current rates for each band.

This increased rate applies to properties bought for £40,000 or more. It doesn’t apply to caravans, mobile homes or houseboats.

If you buy a new main residence but there’s a delay in selling your previous main residence, you’ll have to pay the higher Stamp Duty rates as you’ll now own two properties.

You can request a refund for the amount above the normal Stamp Duty rates if:

  • You sell your previous main residence within three years, and
  • You claim the refund within three months of the sale of your previous main residence, or within 12 months of the filing date of your self-assessment tax return, whichever comes later.

Below is a table showing what the tax percentages are for first time buyers, the standard rate and for those buying a second property.

Stamp Duty Tax Rates as of November 2017
Tax BandFirst time buyerStandard rateSecond home
£0 – £125,0000%0%3%
£125,001 – £250,0000%2%5%
£250,001 – £300,0000%5%8%
£300,001 – £925,0005%5%8%
£925,001 – £1,500,00010%10%13%
£1,500,000+12%12%15%
Stamp Duty Calculator
Last Updated: 2017-12-04T21:12:20+00:00
By admin